Quote:
Originally Posted by Slava
Well an insurance policy could be used for these types of things and would almost surely be a whole life plan that builds up a cash value. There is more flexibility in the sense that you could withdraw funds for purposes other than just education. You wouldn't get the government grants here though, and that along with the growth on the grants can be significant over the years.
There are benefits to these other ideas though, as long as you're willing to fund them and understand in advance what you're getting into.
|
I suppose the person could be also talking about Universal Life, maybe paid up in 10 or 20 years or something that still does have some guaranteed cash values, but also having the tax sheltered investment portion of it.
Have also seen a limited pay Critical Illness touted with return of premium option where you get to protect your child from Critical Illness insurance for, but if they don't need it you give up the policy and use the saved up premiums returned to you as tuition fees/starting up TFSAs for the child or whatever.